No long-term impact from postgame ruckus / Insurers view it as isolated incident

Published 4:00 am, Tuesday, January 28, 2003

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No long-term impact from postgame ruckus / Insurers view it as isolated incident

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The disturbance that erupted in East Oakland after Sunday's Super Bowl caused an estimated $100,000 in damage to stores, according to the three main affected merchants -- a McDonald's, a Kelly-Moore paint store and a tire shop.

The bulk of it, some $60,000 in damage and stolen merchandise, was borne by a small independent, Gomes Tire and Service Center on International Boulevard at 50th Avenue.

Still, despite the dramatic images of overturned cars in flames and stores with shattered windows, the crowd's rowdiness on Sunday -- and also after the AFC championship game in Oakland on Jan. 19 -- is unlikely to have any lasting impact on area businesses, insurers said.

Both were minor incidents compared with such wrenching events as the Watts riots in 1965 or the Rodney King riots in 1992. Fueled by years of pent-up frustration over racism, those riots spanned huge swaths of Los Angeles, left dozens dead and injured, and destroyed or damaged hundreds of buildings.

Each riot cost about $1 billion in current dollars. The Watts and King riots led to seismic shifts for businesses in the affected neighborhoods. Land values plummeted. Insurers were so gun-shy after Watts that they stopped writing policies in parts of Los Angeles, which spurred creation of a state- run insurance pool, Fair Access to Insurance Requirements, or FAIR.

By contrast, this past Sunday's "disturbance -- I wouldn't even call it a riot, which has to be declared by civil authorities -- was small in nature, very limited in scope, was not based on a long-term feeling of injustice," said Mike Harris, spokesman for FAIR in Los Angeles.

"It was no different than after the Lakers win a championship or Chicago after hockey games if the Blackhawks lose," he said. "Sports plus drinks, you almost expect it."

Even some affected merchants shrugged off the losses.

At Kelly-Moore Paint Co. on International Boulevard, 28 of the 30 giant plate-glass windows were shattered on Sunday, and 10 gallons of paint were stolen and dumped on the curb and street.

"It's really minor damage, other than the windows," said Arthur Whitmore, East Bay district store supervisor, who was inspecting the damage, which he estimated at $10,000 to $15,000 at most. "We're fortunate that the product loss was very small."

The 150-store chain Kelly-Moore, like many large companies, is self-insured,

meaning it covers its own losses.

"Looking at how extensive the damage could have been, it's a drop in the bucket," Whitmore said, apologizing for the pun. "The store's been operating here since the mid-'70s; it's a very productive store as far as sales. We'll remain here to serve our customers."

Down the street at the McDonald's, which suffered about $30,000 in damage from smashed windows and a small fire, workers swept glass and boarded up windows. Would-be customers were turned away and told to come back today.

"This is just a part of life," he said. "They'll take care of the problems."

For smaller businesses, the damage makes a bigger dent, of course.

At Gomes Tire and Service Center, owner Aurelio Gomes Sr. worried whether his insurance would cover an estimated $60,000 in losses.

Some $50,000 in tires and high-end rims were stolen by looters who smashed their way in through a side window, and his office was ransacked. Vandals even smashed his computer monitor.

Gomes had considered boarding the windows before the Super Bowl game but decided against it. In 22 years in business, he had never even been burglarized.

Insurers said Gomes most likely would be covered.

"Almost all property policies cover vandalism," said Scott Hauge, president of CAL Insurance & Associates, a broker which specializes in small businesses. "For most of these chains (like McDonald's and Kelly-Moore) this is nickels and dimes. For smaller business, given the tight economy, this really hurts."

Insurance industry officials were sanguine about the overall impact.

"When insurers look at these events, they're looking at the cause and to see if there's a trend," said Pete Moraga, spokesman for the Insurance Information Network of California, which represents about 60 percent of the state's homeowners and auto insurers. "Two weeks is not a trend, especially if it's only twice in the whole year and driven by one event."

Still, there's always the chance rates could rise.

"The experience for the area over time can affect the ratings that are charged overall for insurance," said Janet Ruiz, a spokeswoman for State Farm Insurance in Rohnert Park. "Eventually it comes back to the policy holders if there are a lot of losses."